AGENDA CAPTION:
Title
Consider approval of Ordinance 2024-38, on the first of two readings, approving the 2024 Annual Service Plan Update for the Trace Public Improvement District; authorizing the City Manager, or designee, to execute said document on behalf of the city; and declaring an effective date.
Body
Meeting date: August 20, 2024
Department: Finance
Amount & Source of Funding
Funds Required: N/A
Account Number: N/A
Funds Available: N/A
Account Name: N/A
Fiscal Note:
Prior Council Action:
• In October 2015, City Council adopted Resolution 2015-145, creating the Trace Public Improvement District. City Council also adopted Resolution 2015-146 approving a Financing Agreement, Service and Assessment Plan and Reimbursement Agreement.
• In October 2016, City Council adopted Ordinance 2016-42(b) approving the first special assessment for the Trace Public Improvement District.
• City Council has approved Service and Assessment Plan updates annually since 2019, most recent was in October 2023.
• In December 2023, City Council adopted Ordinance 2023-88, amending the Service and Assessment Plan for the second bond issuance, as well as the acquisition and reimbursement agreement.
City Council Strategic Initiative: [Please select from the dropdown menu below]
Public Safety, Core Services & Fiscal Excellence
Economic Vitality
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Comprehensive Plan Element (s): [Please select the Plan element(s) and Goal # from dropdown menu below]
☒ Economic Development - Fiscally Responsible Incentives for Economic Development
☐ Environment & Resource Protection - Choose an item.
☐ Land Use - Choose an item.
☐ Neighborhoods & Housing - Choose an item.
☐ Parks, Public Spaces & Facilities - Choose an item.
☐ Transportation - Choose an item.
☐ Core Services
☐ Not Applicable
Master Plan: [Please select the corresponding Master Plan from the dropdown menu below (if applicable)]
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Background Information:
Highpointe Communities has approximately 420 acres of land, generally located on the east side of IH-35, south of Posey Road, and also bordered by Old Bastrop Highway, at the southern edge of the City of San Marcos. The property is primarily for residential, including a component of multi-family housing, as well as a business park and commercial sites.
On September 1, 2015, the City of San Marcos City Council approved a term sheet that designated the parameters for which a Public Improvement District for the Trace Subdivision would be created. The key terms included the following:
Maximum Total Indebtedness: $19,500,000
Total Construction Dollars for which the developer can be reimbursed: $15,500,000
The Maximum Total Equivalent Tax Rate could not exceed $0.50
In October 2016, the City Council approved the first special assessment for the Trace Public Improvement District.
State statute requires the service and assessment plan be updated and approved by City Council each year. A change in state law that became effective in 2022 requires service and assessment plan updates to be adopted by ordinance. Prior to 2022, updates were adopted via resolution. The Trace Service and Assessment Plan has been updated each year since 2019, most recently on October 17, 2023.
On December 19, 2023, the City approved a restated 2023 Service and Assessment Plan to account for the second and final bond issuance. The ordinance also amended the reimbursement agreement.
Council Committee, Board/Commission Action:
N/A
Alternatives:
N/A
Recommendation:
City Council approve the Annual Service and Assessment Plan update.